Gatron (Industries) Limited said this week that a proposed restructuring with two of its key corporate shareholders has been called off, drawing a line under a months‑long process that would have simplified the polyester maker’s shareholding tree. In a notice to the Pakistan Stock Exchange dated 13 August, the company reported that the boards of Nova Frontiers Limited and Ghani & Tayub (Private) Limited – both identified as corporate shareholders of Gatron – had resolved to withdraw the planned Scheme of Arrangement. Gatron’s own board then rescinded its previous consent by circular resolution. The company emphasised that the withdrawal would not affect its day‑to‑day operations, assets or the rights of remaining shareholders, and said any court proceedings initiated for the scheme would be withdrawn. The firm added that a trading blackout tied to the process had ended with the disclosure.
While the brief notice did not spell out the “latest developments” behind the decision, it caps a sequence that began in February when Gatron authorised management to pursue a three‑party scheme with Nova Frontiers and G&T, subject to approvals from shareholders and the High Court of Balochistan at Quetta. That authorisation effectively set the stage for an intra‑group capital tidy‑up rather than an operational merger.
At the heart of the now‑abandoned plan was a corporate housekeeping exercise among Gatron and two of the entities that sit above it in the group chart. The March‑quarter consent from Gatron’s board described a scheme to be presented to shareholders and the court; this week’s update says Nova Frontiers and G&T have chosen to stand down, prompting Gatron to withdraw its own earlier approval. The company stated explicitly that there is no impact on its business or assets from the withdrawal, and that the parties will move to unwind court proceedings begun for the scheme. In market terms, the company also lifted a “closed period” that had been in place, allowing insiders to trade again under the usual rules.
Business media had flagged the authorisation back in February, quoting the same PSX filing and emphasising that any restructuring would depend on court sanction and shareholder votes. By August, the tone had reversed: industry outlets reported that Gatron had withdrawn the scheme. Taken together, they bookend a process that never left the procedural lane. The content in this publication is expensive to produce. But unlike other journalistic outfits, business publications have to cover the very organizations that directly give them advertisements. Hence, this large source of revenue, which is the lifeblood of other media houses, is severely compromised on account of Profit’s no-compromise policy when it comes to our reporting. No wonder, Profit has lost multiple ad deals, worth tens of millions of rupees, due to stories that held big businesses to account. Hence, for our work to continue unfettered, it must be supported by discerning readers who know the value of quality business journalism, not just for the economy but for the society as a whole.To read the full article, subscribe and support independent business journalism in Pakistan
